Gold, silver, platinum, mobile phones and cancer drugs are among the items likely to become cheaper with Finance Minister Nirmala Sitharaman announcing relaxation in duties in her Union Budget 2024 speech on Tuesday.
Here’s what is likely to become cheaper:
- Mobile Phones: The basic customs duty (BCD) on mobile phones, mobile printed circuit board assembly (PCBA), and mobile chargers has been reduced from 20% to 15%.
- This move by the government is expected to make smartphones more affordable for consumers, which can be considered a good sign for the ‘Made In India’ manufacturing sector.
- This decision comes in light of the substantial growth in domestic production and exports of mobile phones over the past six years.
- The announcement has been welcomed by handset and electronics manufacturers, who have long advocated for a rationalized import duty structure to attract global value chains and enable large-scale manufacturing in India.
- Cancer Drugs: Three more cancer treatment drugs exempted from customs duty.
- Gold and Silver: Customs duties on gold and silver to be reduced to 6%.
- Platinum: Customs duties on platinum to be reduced to 6.5%.
- The reduction in basic customs duty of gold, silver and platinum has been a long pending demand of the gems and jewellery industry.
- Shares of gold and jewellery retailers surged after Nirmala Sitharaman’s announcement. On the BSE, the stock of Senco Gold zoomed 6.16% to trade at Rs 1,000.80 apiece, Rajesh Exports surged 5.49% to Rs 313.90 and PC Jeweller jumped 5% to trade at Rs 74.16 — also its upper circuit limit.
- In addition, shares of Titan Company climbed 3.66% to Rs 3,371.65 per piece, Tribhovandas Bhimhji Zaveri rose 2.79% to Rs 140.20, and Kalyan Jewellers India gained 1.54% to Rs 537.05 apiece on the bourse.
- Seafood: Basic customs duty on certain brood stocks, shrimps and fish feed to be reduced to 5%.
- Following the announcement, shares of producers and exporters of seafood products’ firms jumped.
- The stock of Zeal Aqua soared 9.27%, Kings Infra Ventures surged 8.15%, Coastal Corp climbed 7.55%, Apex Frozen Foods zoomed 7.51% and Waterbase jumped 5.51% on the BSE.
- Solar Energy Parts: Govt proposes not to extend customs on solar energy-related parts.
- List of exempted capital goods for use in the manufacturing of solar cells and panels in the country to be expanded.
- Footwear: Govt proposes to cut customs duty of manufacturing leather and footwear.
- Critical Minerals: 25 critical minerals to be exempted from customs duties & BCD on two of them to be reduced.
- The finance minister proposed to fully exempt 25 minerals, such as lithium, copper, cobalt and rare earth elements, which are critical for sectors like nuclear energy, renewable energy, space, defence, telecommunications, and high-tech electronics from customs duties and reduce basic customs duty on two of them.
- This will provide a major fillip to the processing and refining of such minerals and help secure their availability for these strategic and important sectors, she said.
- Ferronickel, Blister Copper: Basic customs duty on ferronickel and blister copper to be removed.
Here’s what is likely to become costlier:
- Telecom equipment: The government has proposed to increase import duty on motherboards, technically called printed circuit boards, by 5% in the Union Budget 2024-25 to boost domestic telecom gear manufacturing.
- The increase in basic customs duty for telecom PCB assembly comes with the exemption of critical minerals that are used in the manufacturing of communication equipment.
- Ammonium Nitrate: Customs duty on ammonium nitrate to be raised to 10%
- Non-biodegradable Plastics: Customs duty on non-biodegradable plastics to be raised to 10%
Finance Minister Nirmala Sitharaman also said the government plans to raise capital gains exemption limit on certain financial assets to Rs 1.25 lakh per year for middle and upper middle class.
Presenting the Budget for 2024-25, she announced a hike in STT (securities transaction tax) on F&O (futures and options) securities by 0.02% and 0.1%. Income receipt on share buyback will be taxed in the hands of recipients, Sitharaman added.
The Finance Minister further announced abolishing angel tax for all classes of investors in startups. “First of all, to bolster the Indian startup eco-system, boost the entrepreneurial spirit and support innovation, I propose to abolish the so-called angel tax for all classes of investors,” she said.
The removal of the angel tax is expected to be a boost for startups as it will help in promoting a more conducive environment for them.
Stay informed with our comprehensive coverage of Union Budget 2024. Get the latest on new income tax slab rates for AY 2024-25 in Income Tax Slabs Budget 2024 LIVE Updates . Track the impact of Budget 2024 on the stock market in Stock Market Budget Day 2024 LIVE Updates. Watch Union Budget LIVE Streaming here
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